Help with potential client

[Jeffrey Stasz]

Hey all, 

Could use some help from some more experienced folks on the board: 

A potential client came through Houzz with 3 projects. All three projects are no where near the stage where a contractor should be involved and I told them that. I offered to manage the projects as a construction manager for a fee but they continued to push for (free) estimates and bids. 

So, I put together a rough estimate for the project that would not require an architect or engineer. Potential client agreed to the rough estimate and I went out to the project site for my 2nd consultation. I also pulled in some of my subs so I could start getting hard numbers on trades. 

We talked through the project in more detail and I agreed to provide a fixed bid for the first phase of what is going to be a 3 phase project. 1. Permitting, Demo and Framing  2. Trades  3. Finish work and Close Out. 

Thinking everything was okay. I drafted construction documents in AutoCad (a day of time) put together a takeoff (another day of time) and drafted a contract (1/2 day of time) which I submitted today. So at this point including research, travel and bid documents I have about 3-4 days of time into the client. 

Today I sent out the contract with terms and a fixed bid and they responded asking me to break down my bid by component (Demo, walls, floors, doors etc etc). And they also asked me to breakdown the cost of all the components for phase 2 and 3. I am starting to get the sense that: 

1. they have not read any of the things I have sent them. 

2. They are going to be a huge pain in the ***. 

3. I am going to continue investing time in this client only to have them take my breakdown, drawings and building plans and then bid out to a trillion other folks. 

Just wondering what some of you more experienced folks would recommend? My gut tells me to tell these folks that I have submitted what I am going to submit and that is it. 

Thanks in advance. 

[Aaron McGinnis]

Welcome to contracting. You're meeting the learning curve of client management.

0 Hour mistake: Going against your gut and getting involved in a project that isn't at the phase where contractor involvement makes sense. This person was really just looking for someone they could tar baby into doing plans instead of hiring an architect.

First mistake: When the client agreed to a rough budget, take a retainer fee to continue to work on the project. Not a deposit - a retainer fee. I have a pretty solid rule that I will spend no more than 2 or 3 (or so) man hours on a lead prior to getting paid. EVERY TIME I break this rule, it ends up being a mistake.

2nd mistake: Delivering construction documents for no pay. Rookie mistake.

3rd mistake: Agreeing to do a full project in phases. It's too many exit ramps for the client and shows a lack of their commitment to you.

4th mistake: Bids need to be fairly detailed out anyway. I'm not saying enumerate how many studs you're using, but I am saying that you need a line for framing, a line for drywall, paint, etc. 

If a client is asking for component costs (lumber, nails, etc.)... walk. Asking for fixture costs is OK, asking for building component costs is not. That person will be a never-ending pain in your butt.